PepsiCo profit climbs 18%, sees higher costs

SteveGelsi

NEW YORK (MarketWatch) -- PepsiCo Inc.
PEP, +1.39%
on Thursday said its second-quarter profit rose 18% to $1.89 billion, or $1.17 a share, from $1.6 billion, or 98 cents a share, in the year-ago period. The Purchase, N.Y., snack and beverage giant's core earnings rose to $1.21 a share from $1.10 a share. Revenue increased to $16.8 billion, from $14.8 billion. Wall Street analysts expected earnings of $1.21 a share on revenue of $16.36 billion, according to a survey by FactSet Research. PepsiCo said it expects 2011 profit to grow in the high single-digits over its core earnings of $4.13 a share in 2010, with a currency benefit of about 2%. Earlier, Pepsi said it expected growth of 7% to 8% and a currency benefit of 1% to 2%. Pepsi said it's facing "higher uncertainty regarding macroeconomic and consumer trends for 2011 and anticipates high global commodity cost inflation and ongoing support of strategic initiatives in emerging markets and of its brand-building activities."

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.